Shanghai Diesel Engine Co., Ltd. held its annual supplier conference in Shanghai on March 16, 2018. Shangchai's General Manager Qian Jun and Party Secretary Li Jin and other senior executives attended the conference, and some leaders from such departments as procurement, planning and logistics, technology and quality assurance, and production were also present at the conference.

ASIMCO Shuanghuan received positive comments from Shangchai's department leaders for its timely delivery, IQC pass rate as 100% and zero-distance failure rate as 0PPM, joint development of new products and on-site service in 2017. The company was recognized again as Shangchai's "Excellent Supplier", the highest honor enjoyed by the company for 14 consecutive years.

ASIMCO Shuanghuan's General Manager Wu Yingxue was invited to attend the conference. In his speech as the representative of excellent suppliers (see the second photo on the right), he reviewed the past cooperation between ASIMCO Shuanghuan and Shangchai for more than two decades, extended his congratulations to Shangchai's excellent performance in 2017, expressed his good wish for Shangchai's future development and conveyed his gratitude to the generous supports from Shangchai's department leaders. Mr. Wu mainly introduced the company's operation system, R&D performance and manufacturing capacity. The new materials and advanced surface processing technique of piston rings drew much attention from Shangchai's R&D department leader, and the information and automation-oriented upgrading of production site aroused considerable interest from Shangchai's production and quality department leaders. They exchanged their views with Mr. Wu after the conference. Mr. Wu said that the company will keep up with Shangchai's development pace, constantly treat Shangchai as its most important client, spare no efforts to support Shangchai's new product development, integrate its latest R&D results into Shangchai's new product development, further enhance the product competitiveness, and ensure Shangchai's demand in terms of timely delivery and quality assurance.

On the morning of March 16, Mr. Wu attended the seminar for the leaders of "core suppliers". He had a chance to discuss in details with Shangchai's senior executives and other suppliers' senior executives about the market condition in 2018 and the development plans for the next years. Shangchai announced at the supplier conference in the afternoon that it sold 88367 engines in 2017, up 47% annually and the record high for the last five years, and will sell 130,000 engines in 2018. In the next years, Shangchai will strategically place an equal stress on internal and external markets. On one hand, Shangchai will get deeply integrated into SAIC's commercial vehicle business and become the latter's supporting base for commercial vehicles. On the other hand, Shangchai will search for the partners in engineering machinery market, and regain its traditional advantages in engineering machinery and ship electrical market by improving operation model and integrating sales channel to achieve the strategic goal of "securing market leadership and reshaping past glory". According to Shangchai, China's heavy-duty truck market boasted the peak growth in 2017, and is expected to see a growth slowdown in 2018, when the market will see high and then low sales, but the mid-duty and low-duty trucks will have the similar sales results as in 2017. Following the high growth in 2017, the engineering machinery market will keep steady sales. The product structure will get further improved and the market has changed from "quantity-based" growth to "quality-based' growth. The ship electrical market will have the total sales almost same as in 2017.

Some requirements for supply chain are proposed at the meeting. For instance, the suppliers should increase product and production quality through zero defects, solve quality problems via QC and 8D, use new technologies, processes and materials to reduce costs of spare parts, promote lean production, improve management model, and decrease costs related to rework, inventory, failure and service. For joint development, they should prematurely get involved in the project of new products and integrate their respective advantages. For joint exploration, they should make innovative breakthroughs, overcome technological problems and develop unique patent technologies. They should use some sophisticated technologies like LOT and big data to get integrated into Shangchai's management system, and solve the problems on production site and market user site to guarantee the supply of spare parts.